Asset Allocation
MacroQuant recommends a slight underweight position in equities, and favors a below-benchmark duration stance in fixed-income portfolios. The model is very positive on the US dollar, neutral on gold, constructive on copper, and very bullish on oil.
As long as the AI boom keeps booming, all other investment considerations will remain on the back burner. However, if the AI trade fizzles, this would expose deep-seated problems within the global economy, which could very well lead to an economic downturn as early as next year.
The dollar is not being replaced by a single rival, it is being diluted by a rising cast of “other” reserve currencies. This report identifies the hidden winners of reserve diversification and why they may matter more than investors think.
